Dubai sovereign fund suspends execs over probe

original source Reuters

DUBAI, Sept 14 (Reuters) - Dubai sovereign wealth fund Istithmar World has suspended its vice chairman and chief financial officer 'in light of ongoing investigations' in a government crackdown on corruption.

'Istithmar World confirms that Adel al-Shirawi has been suspended from the position of vice chairman ... and Feras Kalthoum has been suspended from the position of chief financial officer...' the fund said in a statement on Sunday.

'Further, Adel al-Shirawi is no longer serving as a board director of Istithmar World.'

Kalthoum was not immediately available for comment.

Istithmar World, a unit of state-owned Dubai World, said in August that the two were being investigated for alleged wrongdoing while in their previous positions at Dubai mortgage lender Tamweel.

Istithmar World is the largest shareholder in Tamweel, with a 21.6 percent stake.

Kalthoum was head of investments at Tamweel, the largest mortgage provider in the United Arab Emirates by market value, when the alleged wrongdoing took place. Shirawi stepped down as Tamweel's chief executive in January.

Istithmar World, one of the investment agencies established by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum to invest the emirate's wealth abroad, said in August it was not under any investigation. The crackdown has hit real estate stocks in the UAE.

Tamweel's shares fell 2.7 percent on Sunday and have shed almost a quarter of their value since the probe was made public in mid-August.

The investigation is one of a series by Dubai police into alleged financial irregularities involving companies based in the Gulf Arab trade and tourism hub.

Former employees of Dubai Islamic Bank, which also owns a stake in Tamweel, and its affiliate Deyaar Development , have also come under investigation in recent months by Dubai police, though the cases have not led to convictions.

The high-profile cases have triggered extensive local media coverage in the booming oil-exporting states of the Gulf and have hit real estate stocks and market sentiment across Gulf Arab markets.

(Reporting by Lin Noueihed, Editing by Thomas Atkins and Simon Webb) Keywords: ISTITHMAR SUSPENSIONS/

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